Fundamental analysis
involves looking at any data, besides the
trading patterns of the stock chart, that can be expected to impact the
price or perceived value of a stock. As the name implies, it means
getting down to basics. Unlike its cousin technical analysis, which
focuses only on the trading and price history of a stock,
fundamental analysis focuses on creating a portrait of a company,
identifying the
intrinsic or "fundamental" value of its shares, and buying or selling
the stock based
on that information.

How much
emphasis you will put on fundamentals versus the technicals of the
chart is up to you as trader. Most traders will emphasize the technicals while not totally ignoring the multiple and the
current price. It really depends on how much you're putting
into that trade and how long you plan to be in it.

For
those of you who have to see and do the
computations, you analytical types, come
here.
This is way too much overkill for a trader. but you will learn
something. Traders trade mostly on technicals, not the crunched
numbers.